Computing price of at-the-money european put on futures

Assignment Help Finance Basics
Reference no: EM1310627

1) An at-the-money European call on the futures sells for= $5.50. Determine the price of at-the-money European put on the futures? Suppose both the call and put have the same maturity.

2) An investor wants to enter into delta-neutral position with 2 options that, given the present price of underlying asset, have the given prices and deltas:

Option  Price   Delta
   A        14   -0.4300
   B        14   +0.3300

Assume the investor writes 8 contracts of option A. To be delta neutral, how many contracts of option B must be traded? Must they be bought or sold?

Reference no: EM1310627

Computing weighted-average direct manufacturing labour rate

By using above information, what weighted-average direct manufacturing labour rate must you use in making your manufacturing direct labour cost objective?

Computing tax incidences for seller and buyer

Compute deadweight loss from this $1 per unit tax and how much tax revenue government will get from tax. In determining tax incidence burden, compute tax incidences for both s

Determining social efficient level of snowploughing services

Determine social efficient level of provision for snowploughing services. Write down 3 possible methods in which they can share costs of snow ploughing at social efficient l

Computing the percentage returns

Assume a stock had the initial price of= $65.3 per share, paid the dividend of $4 per share in the year, and had the ending share price of=$107.67. Compute the percentage re

Determining the portfolio beta

You own the portfolio invested= 27.03% in Stock A, 16.48% in Stock B, 14.48% in Stock C, and remainder in Stock D. Beta of these 4 stocks are 0.76, 1.08, 0.66, and 1.1. Dete

Determining geometric average returns on stock

You have observed given returns on ABC's stocks over last 5 years: 3.8%, 9.9%, 10.1%, 11.9%, 3.2% determine geometric average returns on stock over this 5-year period.

Determining the portfolio-s expected returns

Portfolio is invested 37.7% in Stock A, 26.6% in Stock B, and remainder in Stock C. Expected returns are 19%, 26.1%, and 11.8% respectively. Determine the portfolio's expect

Hedging risk in risk-management division

If resulting profits are repatriated to production unit in Canada monthly, what risk does this production unit face? How might it hedge this risk?


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd